Hugo Boss, the renowned fashion brand, has revealed that it generated €798 million worth of sales from online channels in 2023. Hugo Boss says its revenue from ecommerce business accounts for 19 percent of its total sales in 2023. Total sales of Hugo Boss were €4.197 billion in 2023.
Hugo Boss has also disclosed substantial investment in its digital transformation projects to enhance business efficiency and bolster revenue streams.
Germany-based Hugo Boss plans to step up its investment in digitalization by more than €150 million by 2025 as compared to 2019.
According to Hugo Boss’s annual report, ecommerce transactions contributed to 19 percent of the total sales in 2023. Total revenue in 2023 was €4.197 billion. The digital business demonstrated double-digit growth, with a 26 percent surge in sales. This growth is attributed to revenue from hugoboss.com and amplified digital revenues generated through partnerships.
Looking ahead, Hugo Boss anticipates sustained double-digit growth in digital revenues, with plans to elevate the share of digital business to more than 20 percent of Group sales by 2025.
The company’s commitment to digitalization is evident in its investments across various fronts. Total marketing expenses rose to €328 million, representing 7.8 percent of Group sales, while selling expenses for brick-and-mortar retail increased by 8 percent compared to the prior year.
In its pursuit to be the leading premium tech-driven fashion platform globally, Hugo Boss has been actively digitalizing critical business activities. Initiatives like “CLAIM 5” have propelled advancements in digital trend detection, AI-enabled pricing, and the creation of innovative experiences in the metaverse.
The Hugo Boss Digital Campus, inaugurated in Porto, Portugal, serves as the nucleus of its digital journey. This campus augments digital analytics capabilities, with a primary focus on enhancing consumer experiences through data-driven insights.
Following the relaunch of hugoboss.com in 2022, the Campus drove the integration of digital features such as interactive shoppable videos and virtual try-ons, as well as the relaunch of the hugoboss.com app.
The Hugo Boss Campus will work on digital initiatives, aimed at improving traffic and conversion rates in global online business. Hugo Boss aims to make the best-possible use of the many advantages offered by AI.
Moreover, Hugo Boss is intensifying efforts to enhance its digital footprint through initiatives aimed at improving traffic and conversion rates in online business. Leveraging AI technologies and integrating interactive features like shoppable videos and virtual try-ons, the company aims to enrich the online shopping experience for customers globally.
As part of its digital evolution, Hugo Boss aims to develop over 90 percent of its products digitally by 2025 from around 65 percent in 2023 and 55 percent in 2022, streamlining the product development process and enhancing operational agility throughout the value chain.
Hugo Boss runs the entire product development process digitally. One example will be capsule collection Aston Martin x BOSS as part of the exclusive BOSS Camel brand line. Set to launch in the second half of 2024, it will be developed digitally – from first sketches and the selection of materials to the distribution of the styles via our digital channels.
Furthermore, substantial investments are underway to expand the logistics network, with plans to increase unit capacity from 65 million to 90 million. It aims to enhance warehouse capabilities through digitalization and automation solutions.
Hugo Boss aims to increase unit capacity from currently around 65 million to around 90 million in the medium term. In particular, Hugo Boss is significantly expanding distribution center for flat-packed goods close to headquarters in Metzingen, responding to the increased global customer demand.
In line with strategic claim “Lead in Digital,” Hugo Boss is striving to improve the online journey at all digital touchpoints – from its own online flagship hugoboss.com, to the online concession business, as well as digital wholesale.
Customers from 73 markets can shop Boss and Hugo products via hugoboss.com as compared with 70 markets in 2020.
Hugo Boss said capital expenditure is targeted to range between 6 percent to 7 percent of Group sales in both 2024 and 2025. It is targeting revenue of EUR 4 billion in 2025.
Hugo Boss runs employer branding campaigns to attract specialists in key areas such as IT and Digital. Its recruitment strategy centers around the Hugo Boss Careers website, offering several digital features like a chatbot and tailored job recommendations.
As part of this multiyear project, Hugo Boss is investing more than EUR 100 million, with a strong focus on the further digitalization and automatization of processes, and the implementation of robotics solutions. Scheduled for completion by 2026, the expansion is aimed at increasing warehouse’s shipping and storage capacity by around 75 percent.
Baburajan Kizhakedath
